Indiana, Pa.-based First Commonwealth Financial Corporation said it had acquired CenterGroup Financial, Inc. of Cincinnati in an all-stock transaction valued at more than $54 million this week.
Officials said CenterGroup will merge with and into First Commonwealth, significantly increasing First Commonwealth’s presence in the Cincinnati market. The merger is expected to add approximately $348.4 million in total assets to First Commonwealth Cincinnati franchise, as well as add three branch locations, a loan production office and a mortgage office. The transaction will add a customer base that is largely (65 percent) business, officials said.
“We are pleased to welcome CenterBank into our organization, further expanding our commercial franchise within the attractive Cincinnati market. We have known the CenterBank team for a long time and believe their customer-focused, commercially oriented business model is a strong cultural alignment and augments our existing Cincinnati growth plans,” Mike Price, President and CEO of First Commonwealth, said. “The expansion of our branch network within greater Cincinnati allows us to attract additional talent, create meaningful customer relationships and deepen our penetration within the market.”
The transaction still requires certain closing conditions, including approval by CenterGroup shareholders and customary bank regulatory approvals. Under the terms of the agreement, CenterGroup shareholders will be entitled to a fixed exchange ratio of 6.10 shares of First Commonwealth common stock for each CenterGroup share.
“We are excited to partner with First Commonwealth’s growing and profitable franchise and believe the cultural alignment between our organizations is the ideal next chapter for CenterBank’s customers, employees and shareholders. We have admired First Commonwealth’s business and reputation within this market and are excited to be a part of its further expansion in Cincinnati. This combination also adds expanded banking products to our organization resulting in an enhanced experience for our customers, employees and community,” Stewart Greenlee, President and CEO of CenterGroup, said.